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Effective Anti-Poverty Tax Credit Often Goes Unclaimed; United Way, the City of San Antonio and Catholic Charities Partner to Help Working Taxpayers Claim It

We’ve all heard stories about people who are struggling. We might even know someone, a friend or relative who is a single mom, stringing together two or even three jobs, the paychecks from which still are barely enough to keep food in the fridge, clothes on the kids, and a roof over their heads. Theirs is a year-round battle to stay afloat. But what many of these low-income San Antonio families don’t realize is that every spring, there is a Federal tax credit designed to lift people out of poverty—and a group of local nonprofits and volunteers are eager to help them take advantage of it.

The United States Earned Income Tax Credit (EITC or EIC) was enacted in 1975 and has since been expanded several times. It is one of government’s most effective tools to address poverty. The EITC is available to working people with low to moderate income who often have dependent children. The credit reduces the amount of taxes you owe and in Texas, can actually give taxpayers a significant refund. With the claimed credit, a working single mom or an employed couple could receive a refund check for $1,000-$4,000—often enough to single-handedly pull a family above the federal poverty line. In 2018, the federal poverty line for a family of four was $24,600. While often agreed upon to be an antiquated measure, as it does not account for childcare costs or healthcare, it is still used by many federal, state and local programs as a means to determine eligibility for a number of social services. In order to get the additional money in their refunds, all eligible taxpayers need to do is claim the credit by filling out a tax return, but many taxpayers are not aware of the credit nor are they aware that they qualify for it. And for San Antonians, that’s where VITA comes in.

see how VITA can help you

The IRS requires the following documents:

Eligible taxpayers should bring a valid photo I.D.

Social Security Card or Individual Tax Identification Number (ITIN) for all family members (ITIN can be obtained at Guadalupe Community Center)

All W-2 forms

If filing jointly, your spouse must be present

Copy of prior year tax return (if applicable)

Any 1099 forms (if applicable)

For information, call 2-1-1

The Volunteer Income Tax Assistance (VITA) Program in San Antonio is a coalition between United Way of San Antonio and Bexar County, the City of San Antonio, Catholic Charities, and the U.S. Internal Revenue Service. VITA provides free income tax preparation and filing for individuals and families whose annual income is up to $55,000. Having taxes prepared by a for-profit company in and of itself can set a taxpayer back hundreds of dollars for a simple return. But the skilled and helpful people at VITA are dedicated to helping people save much more than that.

They are people like Billy Cox, a retired executive from the tech industry who has been a VITA volunteer for the past two tax seasons. “It’s easy to just give money or sit in a boardroom and decide what to do to help people,” says Cox. “It’s another to sit there and have them hand you their W2. This is a way to talk to the folks that philanthropy tries to touch. Plus, it’s a phenomenal way to learn your city.”

During the 2018 tax season, which ran from January through April 17, Cox and his fellow VITA volunteers prepared more than 32,000 tax returns that brought in over $47.7 million in tax refunds and $17.8 million in EITC to low-income families and individuals. That money went back into the San Antonio economy. Plus, VITA saved these taxpayers an estimated $7.2 million in tax preparation fees.

“I’ve worked with families who bring in $22,000 a year and both mom and dad are working fulltime,” says Cox. “It’s amazing to see their eyes light up when they realize they’re going to get a check.”

It’s amazing to see their eyes light up when they realize they’re going to get a check

The VITA volunteers recruited, trained, and placed by Catholic Charities are required to undergo 20 hours of training and pass an IRS exam to become certified before being able to prepare taxes. Not all tax preparation companies in Texas are required to do that in order to prepare taxes. Volunteers are held to the highest standards of customer service and confidentiality—a client’s tax information is only used in preparation of their tax return. Volunteers are well-versed in the preparation of basic to moderately complex tax returns, and the City of San Antonio ensures that their work is in compliance with the most up-to-date tax laws and processes. Returns typically take 30 minutes to an hour to complete—in large part so the volunteers can get to know more about clients and their needs. VITA Volunteers have helped the partners save over $457,000 in staff fees by volunteering their time.

Taxpayers also have options when coming to VITA. They may come in person and have a volunteer preparer do the work that day; they may utilize a service called Virtual VITA, which entails dropping their tax forms off and returning to review and sign 72 hours later; or they may come in person or go online and use a web-based self-preparation service called My Free Taxes. My Free Taxes is made possible through a partnership between United Way Worldwide and H&R Block and offers taxpayers the full suite of H&R Block’s products for free for any individual or family making up to $64,000. Clients may come to one of four VITA sites in San Antonio to have a dedicated volunteer guide them through the process or do it on their own online at www.myfreetaxes.com, making it an easy and accessible tool for those who qualify. VITA volunteers are well-versed in navigating the tax system and finding credits beyond just the EITC to maximize the refund on each return, including the Child Tax Credit, the Senior Tax Credit, and the Student Tax Credit. More than all that, VITA volunteers are there to help, with a confident and caring nature that will comfort anyone intimidated by the seemingly impenetrable tax code.

“We work with some people who’ve been coming for years,” says Cox. “They trust the volunteers to do the right thing for them. Most folks are intimidated by preparing a return. Then there are some who are comfortable doing it themselves but they either don’t have the means or they have questions that they come in and ask. I had a grandmother whose return got a little complicated. She and I laughed a lot. And in the end she told me ‘I know I can’t pay you, but can I give you a hug?’ That’s what keeps me coming back.”

This year, there will be 20 VITA sites in and around the San Antonio metro area, often placed at community centers, libraries, schools and other convenient locations throughout the San Antonio metro area and Bexar County. To find the nearest location, visit www.vitasa.org or call 2-1-1, United Way’s free helpline. All sites opened Feb. 4 and remain available through April 15, 2019. Eligible taxpayers should bring a valid photo I.D., Social Security Card or Individual Tax Identification Number for all family members, all W-2 forms, a copy of their prior year’s tax return, and any 1099 forms. If filing jointly, both spouses must be present.

Everyone has to pay taxes. But with VITA volunteers, the process can be quick and painless—and leave more money in the hands of those families who need it.

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